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Press Release

 

Thursday 11 February 2010

FUNDS OF FUNDS SALES THE HIGHEST EVER - IMA DATA REVEALS 

Investment fund statistics for Funds of Funds, Tracker and Ethical data - Quarter 4 2009 and 2009 Full Year 

The Investment Management Association (IMA) today publishes its quarterly figures for Funds of Funds, Ethical and Tracker funds for Quarter 4 and the full year 2009.

Key findings for 2009:

  • Funds of Funds net retail sales the highest on record 
  • Tracker fund sales the highest for six years
  • Sales of Ethical funds steady

Richard Saunders, Chief Executive of the IMA, commented:     

"Funds of Funds have continued to increase their market share, with net retail sales in 2009 being the highest ever and funds under management the highest year end total on record.  We are also seeing an increasing proportion going to funds invested with other fund managers, and these now constitute the majority.

 "Trackers, which mainly invest in UK indices, have had the best year for net retail sales since 2003. 

"Ethical fund sales are just 1% up on 2008, but funds under management finished 2009 at the second highest year end ever."                  

FUNDS UNDER MANAGEMENT 

2009

2008

Q4 2009

Q3 2009

Funds of funds

£42.7 billion

£30.0 billion

£42.7 billion

£39.7 billion

Tracker funds

£27.7 billion

£20.1 billion

£27.7 billion

£26.5 billion

Ethical funds

£5.6 billion

£4.5 billion

£5.6 billion

£5.5 billion

All funds

£480.8 billion

£361.7 billion

£480.8 billion

£463.3 billion

 

 

 

RETAIL SALES
(NET)
 

2009

2008

Q4 2009

Q3 2009

Funds of funds

£3,894 million

£998 million

£1,387 million

£1,055 million

Tracker funds

£313 million

£307 million

-£14.4 million

£79 million

Ethical funds

£155 million

£154 million

£62 million

£59 million

All funds

£25,782 million

£3,821 million

£7,011 million

£7,256 million

  

  

  

  

  

FUNDS OF FUNDS

Funds of Funds net retail sales in 2009 were the highest ever recorded 

Net retail sales of Funds of Funds totalled £3.9 billion in 2009 - nearly four times the 2008 level of £1 billion - and the highest ever recorded. 

Funds of Funds sales accounted for £1 in every £10 invested in all funds (10% of gross retail sales) in 2009.

Funds under management for Funds of Funds totalled £42.7 billion - the highest year-end on record.  This was 42% up on 2008, ahead of the overall level of growth for all funds under management (33%).  Funds of Funds represent 8.9% of all funds under management (£1 in £11) - more than double the proportion ten years ago (4.2%) when the total for Funds of Funds under management stood at just £10.6 billion.

As well as growing in popularity, there is a trend for Funds of Funds to invest a greater proportion of their money in the funds run by other firms (external).  In 2009 this was the case for more than half (56%) of Fund of Funds under management, a proportion that has increased in the past ten years (21% in 1999).  The total invested in external funds at the end of 2009 was £23.8 billion, more than ten times the level it was  ten years ago (£2.2 billion).

 

TRACKER FUNDS

Tracker fund net retail sales - in 2009 the highest for six years

Net retail sales of Tracker Funds totalled £313 million in 2009, the highest since 2003 

Tracker funds under management - the highest year end on record

Tracker funds under management totalled £27.7 billion at the end of 2009, 38% up on 2008 (£20.0 billion).  This is slightly ahead of the 33% rise in total funds under management.   

Of the 73 Tracker funds, 42 (58%) track the main UK indices, mainly the FTSE All Share and the FTSE 100 indices. The remainder track a wide spread of other equity indices, including European, Global, Asia Pacific and the US. 

 

ETHICAL FUNDS

Net retail sales of Ethical funds in 2009 were up 1% on 2008 but well down on 2007

Sales of Ethical funds rose 1% year-on-year, with net retail sales of £155 million in 2009, just £1 million up on the year before.

Although net retail sales of Ethical Funds in 2009 are at a much lower level than in 2007, with outflows of £14 million in Quarter 2 2009, Quarter 4 sales were the highest since Quarter 4 2007. 

Ethical funds - funds under management in 2009 were the second highest year end on record

Ethical funds under management increased 26% year-on-year to £5.6 billion at the end of 2009 - and were the second highest year end on record after 2007.  (However, this increase was less than the average for all funds under management, which was 33%.)

The number of funds in the IMA Ethical category stood at 54 at the end of 2009, slightly down from the high for 56 in 2008, but offering considerably more choice to investors than the 15 available in 1992 when net retail sales totalled just £10 million. 

-ENDS-

For more details on the figures given in the press release, please see the tables on the links below.

All tables

1. Summary 

2. Fund of funds - funds under management by asset type

3. Fund of funds - sales

4. Fund of funds - sales by asset type

5. Tracker and Ethical funds - funds under management and sales

Note: Gross retail sales are new sales or switches recorded, repurchases are when investors sell their investments.  Net retail sales comprise total sales minus repurchases.

For further information, please contact:

Noreen Shah, Press Officer, IMA, 020 7831 0898
Ginny Broad, Head of Communications, IMA, 020 7831 0898 or 07834 089332

The IMA's press releases and statistical information can all be found at www.investmentuk.org

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